CRA Reviews vs. Desk Audits: What They Mean and How to Handle Them

You’ve filed your taxes, tucked away your receipts, and moved on with your year—until a new message notification appears in your CRA My Account. It’s not labelled as an “audit,” but it’s asking for details about your return. Is it serious? Should you be worried?

The truth is, many of these notices are part of the CRA’s routine verification work. They fall into categories called “reviews” or “desk audits,” and while the terms can sound intimidating, they’re usually narrower in scope than a full audit. Understanding what they mean and how to respond can help you navigate the process with confidence.

Reviews vs. Desk Audits  

A review is the CRA taking a closer look at one or more items on your return to confirm they’re accurate. Reviews can happen before your Notice of Assessment (a pre-assessment review) or after (post-assessment/processing review). They’re a normal, ongoing part of the CRA’s programs to keep filings accurate.

A desk audit is similar but a little more involved. It’s conducted entirely by correspondence (mail or online) and focuses on specific claims (e.g., medical expenses, charitable donations, home-office or vehicle expenses, or rental statements) rather than your whole return. It’s often the most common type of audit Canadians encounter, and communication is typically by email or phone.

Why you might be contacted

A review or desk audit notice doesn’t mean you’ve done anything wrong. Returns are selected for a few common reasons, including:

• A mismatch between your return and slips the CRA already has (e.g., T4s, T5s, etc.)
• Claims that look higher than typical for similar taxpayers, industries, or income levels (e.g., donation receipts, medical expenses, etc.)

Sometimes, you’re simply chosen as part of routine quality control. Either way, what matters most is responding to what’s requested clearly and on time.

How to respond effectively

Start by reading the letter slowly. Note which items the CRA is reviewing, which year it relates to, and the deadline. Missing the date can lead to reassessment, so put it in your calendar right away.

Then pull together documents that directly support the claims in question—no more, no less. Keep copies for yourself, and consider a one-line note where a receipt needs context (for example, how a specific expense ties to business use).

When you’re ready to send, the fastest, most secure route is the CRA’s Submit documents service via My Account or My Business Account (or your DMCL advisor can use Represent a Client). You’ll get a confirmation/reference number and can track what was sent. If you need extra time, call the number on the letter before the deadline to request an extension, but be wary that extensions are not always granted.

A quick note on records

Keep supporting documents for six years from the end of the tax year they relate to (longer in some situations like dissolutions). If the CRA asks about a claim, you’ll need the receipt, log, or statement to back it up, even if you e-filed and weren’t required to attach anything at the time.

Common pitfalls (and easy fixes)

Most reviews and desk audits resolve smoothly, but a few things can create headaches:

• Ignoring the letter or missing the date: if you can’t gather everything in time, call and ask for an extension rather than going silent.
• Sending originals you can’t replace: send clear copies unless the CRA specifically demands originals.
• Oversharing: stick to what the letter asks for; unrelated documents can open new lines of inquiry.

When to bring in a professional

Many reviews are straightforward. Still, it’s worth calling your DMCL advisor if the CRA is questioning a large or complex claim, the request involves business expenses, capital gains, investment income or GST/HST, or you’ve been through several reviews recently. A CPA can help you organize a clear response, minimize back-and-forth, and protect your position.

Important note: Your DMCL advisor can only help if the documentation exists. If the CRA is reviewing expenses you claimed, you’ll need the receipts or records first. With those in hand, we can advise whether they meet CRA requirements and are deductible based on the legislation and your situation.

A CRA review or desk audit isn’t a reason to panic. They’re routine tools the CRA uses to keep the system fair and accurate. By understanding what’s being asked, sending exactly what’s needed through the proper channel, and keeping your records tidy for six years, you’ll make the process faster and far less stressful.

If you’ve received a review or desk audit notice from the CRA and aren’t sure how to proceed, contact your DMCL advisor. They can help you understand the request, organize your response, and make sure you’re meeting your obligations while protecting your best interests.